What is a documentary credit and how does it wo... - SS1 Commerce Documents used in foreign trade Question
What is a documentary credit, and how does it work?
A documentary credit, also known as a letter of credit, is a guarantee issued by a bank on behalf of a buyer that ensures payment will be made to the seller upon certain conditions being met. Essentially, the buyer's bank promises to pay the seller once they receive documentation that proves the goods or services have been delivered as agreed.
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